Here’s What Makes Markel (MKL) a Smart Long-Term Investment

Weitz Investment Management, an investment management firm, published its “Partners III Opportunity Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Partners III Opportunity Fund’s Institutional Class returned -5.09% in the first quarter of 2022 compared with -4.60% for the S&P 500 and -5.28% for the Russell 3000. For the fiscal year ended March 31, 2022, the Fund returned -0.53% compared to +15.65% for the S&P 500 and +11.92% for the Russell 3000. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Weitz Investment Management Partners III Opportunity Fund mentioned Markel Corporation (NYSE:MKL) and explained its insights for the company. Founded in 1930, Markel Corporation (NYSE:MKL) is a Glen Allen, Virginia-based insurance company with a $17.2 billion market capitalization. Markel Corporation (NYSE:MKL) delivered a 2.92% return since the beginning of the year, while its 12-month returns are up by 8.28%. The stock closed at $1,270.02 per share on June 22, 2022.

Here is what Weitz Investment Management Partners III Opportunity Fund has to say about Markel Corporation (NYSE:MKL) in its Q1 2022 investor letter:

“The quarter’s standout performers were a pair of insurer Markel (NYSE:MKL). Insurers typically benefit from a strong economy, as pricing tends to improve and the volume of risk to be insured grows. We also expect higher interest rates to translate into higher investment income as insurers recycle premium “float” into higher-yielding securities. Markel possess terrific management and top marks as opportunistic capital allocator.”


Our calculations show that Markel Corporation (NYSE:MKL) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Markel Corporation (NYSE:MKL) was in 29 hedge fund portfolios at the end of the first quarter of 2022, compared to 37 funds in the previous quarter. Markel Corporation (NYSE:MKL) delivered a -13.57% return in the past 3 months.

In October 2021, we also shared another hedge fund’s views on Markel Corporation (NYSE:MKL) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.